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In trading, volume refers to the number of trades executed within a particular time frame. It’s a direct indication of the asset’s supply and demand.
By measuring the volume of trading, volume indicators indicate whether a trend is likely to last.
For example, high volume on the uptrend indicates high demand and therefore, a further price increase. It works the same way in the reversed scenario: high volume on the downtrend indicates high supply and a likelihood of a further price drop.